Major developments in Russia’s DTH market may be on the horizon.
Raduga TV, the country’s fourth largest platform, has suddenly found itself in the spotlight following an announcement from the regulator Roskomnadzor that it faces criminal proceedings for allegedly operating without a licence.
Within hours, the local media reported that talks had taken place between Modern Times Group (MTG), the owner of a 50% stake in Raduga TV, and both Tricolor TV and Orion Express, the number one and two platforms respectively, about a possible sale. Apparently they began this summer, when Roskomnadzor says it first uncovered Raduga TV’s violations.
When contacted by Broadband TV News, MTG officially denied that any talks had taken place. It also went a stage further by saying it remained fully committed to Raduga TV.
This was much more definite than not wishing to comment on market rumours, as was reported by the Russian media, and clearly designed to end all speculation about a possible sale.
However, what cannot be denied is the general belief in Russia that its DTH market is heading towards some form of consolidation.
Although ComNews Research, as reported in Broadband TV News this September, suggested that this is inevitable in the next 4-5 years, my view is that it could take place sooner.
Tricolor TV teaming up with NTV-Plus seems the most likely deal, though there are other options in a market in which the top four platforms – Tricolor TV (82.3%), Orion Express (9.2%), NTV-Plus (4.2%) and Raduga TV (3.9%), according to ComNews Research – accounted for all but 0.4% of the country’s 10 million-plus DTH subscribers at the end of last year.
Tricolor TV remains a star performer and continues to break all records. It is also becoming a more sophisticated operation, adding channels, including in HD, and even trialing 4K.
Orion Express has meanwhile seen rapid growth its subscriber base – it stood at 1.2 million as of April this year – and is planning to expand its activities to other parts of the CIS.
NTV-Plus, on the other hand, has recently slashed its subscription fees as it aims to become self sufficient and ultimately profitable. Launched as far back as 1996, it was until recently aimed at the high end of the market and seeing little if any growth.
With satellite capacity in Russia also set to almost double by 2017, interesting times certainly lie ahead.
